NEW YORK, May 21, 2019 /PRNewswire/ -- Broadridge Financial
Solutions, Inc. (NYSE: BR), a global Fintech leader and
part of the S&P 500® Index, today announced that it has entered
into a purchase agreement to acquire RPM Technologies, a leading
Canadian provider of enterprise wealth management software
solutions and services for approximately $300 million USD. RPM's technology platforms
today support over 15 million customer accounts. Building on
Broadridge's strong Canadian Wealth Management business, the
acquisition will bring important new capabilities and
next-generation technology to both RPM's and Broadridge's
clients.
"The addition of RPM Technologies broadens and deepens our
wealth management product offering in Canada," said Tom
Carey, President of Global Technology and Operations at
Broadridge. "We are very pleased to add RPM's state-of-the-art
platforms and blue-chip client roster. This investment underscores
our commitment to bring value-added technology solutions to the
industry, and it supports our longer-term strategy of building a
strong North American Wealth business."
"Broadridge is a global Fintech leader with deep commitment to
the Canadian market and is the best future partner to extend RPM's
growth," said Dave Poppleton,
President and CEO of RPM Technologies. "With our combined
technology and innovation capabilities, clients will gain deep
product expansion opportunities, superior digital channel
capabilities and seamless enterprise solutions."
Partnering with Broadridge will bring the backing of a global
Fintech leader to RPM's clients. The addition of RPM expands
Broadridge Canada's addressable market by providing a solution set
for the retail banking sector and adding enhanced mutual fund and
deposit manufacturing capabilities. RPM has proven capabilities in
the Mutual Fund Dealers Association of Canada marketplace with a suite of services
and solutions and a successful track record of winning and
on-boarding new clients.
The transaction is expected to contribute $40-50 million USD
in revenues to Broadridge in fiscal year 2020 and is not expected
to have a material impact on Broadridge's Adjusted earnings per
share.
Broadridge is purchasing RPM from its current owners which
include Bayshore Capital Inc. The closing of the transaction is
subject to the completion of an intercompany reorganization by RPM
Technologies and standard customary closing conditions.
RBC Capital Markets is acting as exclusive financial advisor to
Broadridge. Canaccord Genuity Corp. is acting as exclusive
financial advisor to RPM.
Forward-Looking Statements
This communication contains forward-looking statements within
the meaning of the federal securities laws, including the Private
Securities Litigation Reform Act of 1995, including statements
giving expectations or predictions of future financial or business
performance or conditions. Forward-looking statements are typically
identified by words such as "believe," "expect," "anticipate,"
"intend," "target," "estimate," "continue," "positions,"
"prospects" or "potential," or by similar words. In particular, any
projections or expectations regarding the proposed transaction
described herein, future financial results, as well as the
assumptions on which such expectations are based, are
forward-looking statements. These statements reflect only our
current expectations and are not guarantees of future performance
or results. These statements involve risks, uncertainties and
assumptions that change over time and could cause actual results or
performance to differ materially from those contained in the
forward-looking statements and historical performance. In addition
to the risks previously disclosed in our reports filed with the
Securities and Exchange Commission ("SEC"), these risks,
uncertainties and assumptions include, but are not limited to: the
ability to meet any closing conditions related to the proposed
transaction on the expected terms and schedule or at all; delay in
closing the transaction; difficulties and delays in integrating the
acquired assets or fully realizing cost savings and other benefits;
business disruption following the proposed transaction; the
inability to realize synergies or to implement integration plans;
and other risk factors described in our Annual Report on Form 10-K
filed with the SEC on August 7, 2018,
our subsequent Quarterly Reports on Form 10-Q and other reports we
file with the SEC. Projected and estimated numbers are used for
illustrative purpose only, are not forecasts and may not reflect
actual results.
These forward-looking statements are subject to numerous
assumptions, risks and uncertainties which change over time and
speak only as of the date on which the statements were made. We
undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise, except to the extent required by
law.
About Broadridge:
Broadridge Financial Solutions, Inc. (NYSE:BR),
a $4 billion global Fintech leader and a part of the
S&P 500® Index, provides investor communications and
technology-driven solutions to banks, broker-dealers, asset
managers and corporate issuers globally. Broadridge's investor
communications, securities processing and managed services
solutions help clients reduce their capital investments in
operations infrastructure, allowing them to increase their focus on
core business activities. With over 50 years of experience,
Broadridge's infrastructure underpins proxy voting services for
over 50 percent of public companies and mutual funds globally, and
processes more than $5 trillion in
fixed income and equity trades per day. Broadridge employs
approximately 10,000 full-time associates in 18 countries. For more
information about Broadridge, please visit www.broadridge.com.
ABOUT RPM:
RPM is a Canadian-based company that provides state-of-the-art,
enterprise-class wealth management software solutions to leading
Canadian banks and wealth management firms. RPM's mission critical
solutions create a holistic, customer-centric platform for multiple
investment accounts and products across multiple distribution and
manufacturing platforms. RPM's scalable solutions have
enabled its clients to achieve growth in market share and
significantly increased processing capacity while dramatically
reducing both ongoing operational and systems costs. RPM's
systems administer over CAD $650 billion
dollars of assets spread among 15 million customer
accounts.
ABOUT BAYSHORE:
Bayshore Capital finances and builds companies that create value
in financial services and information technology. Our success is
based on leveraging our proven strengths and strategic assets:
experienced management, transactional expertise, worldwide
relationships and patient capital.
Investors:
W. Edings Thibault
Head of Investor Relations
Broadridge Financial Solutions
+1 516-472-5129
edings.thibault@broadridge.com
Media:
Tina Wadhwa
Broadridge Financial Solutions
+1 212-973-6164
tina.wadhwa@broadridge.com
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SOURCE Broadridge Financial Solutions, Inc.